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Carvana forecasts second-quarter core profit above $50 million

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(Reuters) – Used-car retailer Carvana Co said on Thursday it expects to post a core profit of more than $50 million for the second quarter, sending its shares 20% higher in premarket trade.

The debt-laden company has been cutting its inventory and slashing advertising expenses to inch closer to profitability and attain positive free cash flow.

The company also forecast adjusted total gross profit per unit (GPU) of more than $6,000 for the second quarter.

(Reporting by Nathan Gomes in Bengaluru; Editing by Shounak Dasgupta and Devika Syamnath)

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